The Idaho Department of Environmental Quality has awarded Island Park a $1.4 million low-interest loan to inventory and replace lead service lines in the community’s drinking water system.

Lead service lines can be a significant source of lead in drinking water, and replacing them can reduce residents’ exposure. The financing carries a 2.5% interest rate over 30 years and includes principal forgiveness.

DEQ estimates the loan structure will save Island Park and its taxpayers about $2.4 million compared with average municipal general-obligation debt issuance costs. Of the $1.4 million award, $1,072,702 is principal forgiveness.

The funding comes through the federal Infrastructure, Investment and Jobs Act. Congress approved the law, which former President Joe Biden signed in 2021.